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January 18, 2020
Category:
Will I Pay A Penalty Fee If I Cash Out My 401k?
I was just approved for SSDI and will begin receiving payments in April of 2020. Can I cash out my 401 K now, before I start receiving payments and if so will I pay a penalty fee? I am 54 years of age.
Hi,
My expertise is limited to Social Security benefits, so I can't tell you whether or not you'd have to pay a penalty for cashing out your 401k. What I can tell you is that regardless of anything you do with your 401k, it would have no effect on your Social Security disability (SSDI) benefits.
Best, Jerry